All in house?

I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

I’ve recently finished reading J Scott’s “The Book On Flipping Houses” and found it to be extremely helpful in understanding most aspects of a fix and flip project.

After thirty years of flipping houses I can tell you that the second you trust the subs completely, things go wrong.

If you live there and are currently renting, then there still is a pathway to house hack say a duplex and better your situation.  

There are a couple of things that come to mind, if a payment is missed the lender cares, if the servicer goes out of business or misses a substitution of trustee, the lender cares, if the borrower goes to the lender to try to get removed from the loan (usually to buy another house) the lender cares, if the property gets caught up in a bankruptcy or divorce, the court cares and that means the lender gets involved.

I am about to buy a house in an area with a Rabbo score of 36 or so.  

The house needed significant updates, so we tackled the kitchen with new cabinets, countertops, and appliances.

Quote from @Rick Im: I recently submitted an offer on a house listed as having 5 bedrooms and 3 bathrooms.

It's a combo of low housing supply, higher interest rates vs. seller expectation, and a poor economic outlook for the country.As an investor with a few rentals it's like like the parking brake is stuck on.